Donohoe looking to keep 9% VAT rate for hospitality sector

The Tourism Minister Paschal Donohoe is going to fight to keep the 9% VAT rate for the services sector in Budget 2015.

The restaurant and other sectors have pleaded with the Coalition to keep it.

However, the Siptu trade union called for it to be put back up to 13.5%, saying it was not delivering jobs and cheaper services.

Speaking on his way into the Cabinet meeting in the past few minutes where the budget is to be signed off, Minister Donohoe signalled it will be kept at 9%.

Mr Donohoe said: "It has contributed to the creation of 30,000 jobs in a part of our economy that's essential for delivering employment and delivering more growth in the future.

"My stance going into this Cabinet meeting is that we should maintain it (the 9%VAT rate), and what is essential is that industry then use this rate, if I secure it, to continue to deliver further jobs and to continue to deliver good deals and competititive pricing to tourists."